Indonesia's Democratization after Suharto: Successes and Failures

Indonesia's Democratization after Suharto: Successes and Failures

Indonesia's Democratization after Suharto: Successes and Failures

Marcus MietznerAustralian National University

Boğaziçi University, Asian Studies CenterIstanbul, 18 December 2012

Marcus MietznerAustralian National University

Boğaziçi University, Asian Studies CenterIstanbul, 18 December 2012

Structure of PresentationStructure of Presentation

1. Overview of Indonesia’s Democratization Trajectory

2. Successes: Electoral Reforms, Military Reform, Institutional Strengthening, Decline of Communal Violence, Economic Stability

3. Failures: Corruption, Dysfunctional Party Financing System, Erosion of Religious Tolerance, Stagnation

4. Conclusions

1. Overview of Indonesia’s Democratization Trajectory

2. Successes: Electoral Reforms, Military Reform, Institutional Strengthening, Decline of Communal Violence, Economic Stability

3. Failures: Corruption, Dysfunctional Party Financing System, Erosion of Religious Tolerance, Stagnation

4. Conclusions

Overview of Democratization TrajectoryOverview of Democratization Trajectory

Suharto resigned in May 1998 after 32 years of military-backed rule

Handed over power to VP B.J. Habibie

Habibie quickly reformed political system, promising elections for mid-1999

Political prisoners freed, free press established

But he did not view himself as a transitional president - instead, he worked towards his re-election

Suharto resigned in May 1998 after 32 years of military-backed rule

Handed over power to VP B.J. Habibie

Habibie quickly reformed political system, promising elections for mid-1999

Political prisoners freed, free press established

But he did not view himself as a transitional president - instead, he worked towards his re-election


Habibie failed in his bid for re-election

Abdurrahman Wahid was elected president in October 1999 through the People’s Consultative Assembly

Erratic, chaotic presidency ensued

Parliament almost immediately turned against him

Political system paralyzed between early 2000 and mid-2001

Habibie failed in his bid for re-election

Abdurrahman Wahid was elected president in October 1999 through the People’s Consultative Assembly

Erratic, chaotic presidency ensued

Parliament almost immediately turned against him

Political system paralyzed between early 2000 and mid-2001


Wahid was impeached in July 2001

Under his successor, Megawati Sukarnoputri, fundamental reforms were brought on the way

Constitutional amendments passed in 2002

But Megawati seen as aloof, indifferent and elitist

Lost 2004 direct presidential elections to Susilo Bambang Yudhoyono

Wahid was impeached in July 2001

Under his successor, Megawati Sukarnoputri, fundamental reforms were brought on the way

Constitutional amendments passed in 2002

But Megawati seen as aloof, indifferent and elitist

Lost 2004 direct presidential elections to Susilo Bambang Yudhoyono


Yudhoyono benefited from many of the reforms put in place before he took office

Democratic consolidation began with his election

Initially, he seemed to live up to his reformist promises

His single most important achievement: settling the Aceh dispute peacefully in 2005

Won landslide re-election based on high likeability factor and generous cash hand-outs to the poor

But now seen as gentle but indecisive lame duck president; reform process has stalled

Yudhoyono benefited from many of the reforms put in place before he took office

Democratic consolidation began with his election

Initially, he seemed to live up to his reformist promises

His single most important achievement: settling the Aceh dispute peacefully in 2005

Won landslide re-election based on high likeability factor and generous cash hand-outs to the poor

But now seen as gentle but indecisive lame duck president; reform process has stalled

Successes: Electoral ReformSuccesses: Electoral Reform

Indonesia now the most democratic state in Southeast Asia

One of the reasons: it has one of the most open and competitive electoral systems in the world

President, governors, mayors, district heads, village heads all directly elected (since 2004)

Parliamentary elections moved from a closed party list system to an open one between 1999 and 2009

High incumbency turnover rate

Indonesia now the most democratic state in Southeast Asia

One of the reasons: it has one of the most open and competitive electoral systems in the world

President, governors, mayors, district heads, village heads all directly elected (since 2004)

Parliamentary elections moved from a closed party list system to an open one between 1999 and 2009

High incumbency turnover rate

Successes: Military ReformSuccesses: Military Reform

Military remained influential throughout the transition

But its power declined drastically after 2004 - especially after the Aceh peace accord

Main reason: intra-civilian consensus on pillars of political reform - military sidelined as a result

Military had to surrender internal security function to police (separatism, communal violence, terrorism)

Military remained influential throughout the transition

But its power declined drastically after 2004 - especially after the Aceh peace accord

Main reason: intra-civilian consensus on pillars of political reform - military sidelined as a result

Military had to surrender internal security function to police (separatism, communal violence, terrorism)

Successes: Institutional StrengtheningSuccesses: Institutional Strengthening

Most of Indonesia’s institutional innovations proved effective

Constitutional Court established in 2003, creating an effective, independent and reformist arbitrator of political conflict

Anti-corruption Commission also created in 2003, which quickly gained public trust through high-profile arrests

Executive-legislative relations turned from being hostile in the early 2000s to complex but polite in the early 2010s

Most of Indonesia’s institutional innovations proved effective

Constitutional Court established in 2003, creating an effective, independent and reformist arbitrator of political conflict

Anti-corruption Commission also created in 2003, which quickly gained public trust through high-profile arrests

Executive-legislative relations turned from being hostile in the early 2000s to complex but polite in the early 2010s

Successes: Decline of Communal ViolenceSuccesses: Decline of Communal Violence

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Successes: Economic StabilitySuccesses: Economic Stability

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Failures: CorruptionFailures: Corruption

Despite high-level arrests by the KPK (ACC), corruption remains rampant

In the TI Corruption Perception Index 2012, Indonesia ranked 118th (2011: 100th; 2010: 110th)

Patronage remains all-pervasive in politics and society

Corruption makes legal sector weak and an instrument of the rich

Despite high-level arrests by the KPK (ACC), corruption remains rampant

In the TI Corruption Perception Index 2012, Indonesia ranked 118th (2011: 100th; 2010: 110th)

Patronage remains all-pervasive in politics and society

Corruption makes legal sector weak and an instrument of the rich

Failures: Dysfunctional Party Financing System

Failures: Dysfunctional Party Financing System

One of the reasons for the continued corruption is the dysfunctional party financing system

Indonesia cut state subsidies for parties by 90% in 2005

All Indonesian parties get together around US$ 1 million a year, allowing them to cover far less than 1 % of their expenses

Result: parties squeeze their legislators and executive representatives for funds

They, in turn, recoup the funds through corruption and lobbyism

One of the reasons for the continued corruption is the dysfunctional party financing system

Indonesia cut state subsidies for parties by 90% in 2005

All Indonesian parties get together around US$ 1 million a year, allowing them to cover far less than 1 % of their expenses

Result: parties squeeze their legislators and executive representatives for funds

They, in turn, recoup the funds through corruption and lobbyism

Failures: Erosion of Religious ToleranceFailures: Erosion of Religious Tolerance

Democracy has opened the door for the expansion of radical Islamist groups

These groups have agitated against Christians, Ahmadis, Shias, atheists and other minorities

Government reluctant to take action because it does not want to be seen as un-Islamic

Erosion of minority rights particularly pronounced under Yudhoyono

Rise of moralist conservatism

Democracy has opened the door for the expansion of radical Islamist groups

These groups have agitated against Christians, Ahmadis, Shias, atheists and other minorities

Government reluctant to take action because it does not want to be seen as un-Islamic

Erosion of minority rights particularly pronounced under Yudhoyono

Rise of moralist conservatism

Failures: StagnationFailures: Stagnation

No significant reforms since 2004

Yudhoyono has administered the country’s stability, but has launched no new initiatives for change

Indeed, some conservative elites have tried to roll back reforms (electoral rights, ACC)

Economically, wages have remained stagnant, informal labour rates high and near-poverty widespread

Wealth concentration increases while ordinary Indonesians get few benefits from the strong GDP growth

No significant reforms since 2004

Yudhoyono has administered the country’s stability, but has launched no new initiatives for change

Indeed, some conservative elites have tried to roll back reforms (electoral rights, ACC)

Economically, wages have remained stagnant, informal labour rates high and near-poverty widespread

Wealth concentration increases while ordinary Indonesians get few benefits from the strong GDP growth

ConclusionsConclusions

Indonesia has recorded remarkable achievements in its democratization process

It has avoided a fresh military take-over, territorial disintegration and another economic collapse

The political institutions are functional, and economic growth respectable

But the country has stopped in the mid-2000s to pursue further institutional reforms

Most importantly, it has not managed to establish a workable party financing system

As a result, corruption remains endemic, the influence of oligarchs on politics is increasing, and the reputation of party politics is declining

If this situation continues unabated, and no further reforms are being launched, the public could become disillusioned with democracy, and calls for a neo-authoritarian solution could emerge

Thus, the 2014 elections will be crucial in deciding Indonesia’s democratic future

Indonesia has recorded remarkable achievements in its democratization process

It has avoided a fresh military take-over, territorial disintegration and another economic collapse

The political institutions are functional, and economic growth respectable

But the country has stopped in the mid-2000s to pursue further institutional reforms

Most importantly, it has not managed to establish a workable party financing system

As a result, corruption remains endemic, the influence of oligarchs on politics is increasing, and the reputation of party politics is declining

If this situation continues unabated, and no further reforms are being launched, the public could become disillusioned with democracy, and calls for a neo-authoritarian solution could emerge

Thus, the 2014 elections will be crucial in deciding Indonesia’s democratic future

Indonesia's Democratization after Suharto: Successes and Failures

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